FIL/SEC/SEs/2023-24/15 22 nd May, 2023 The Manager – Listing Department National Stock Exchange of India Limited 5, Exchange Plaza Bandra-Kurla Complex Bandra (East), Mumbai 400051 The Manager – Listing Department BSE Limited Registered Office: Floor 25 P.J.Towers Dalal Street Mumbai 400 001 Scrip Code: FINPIPE Scrip Code: 500940 Sub: Outcome of the Board Meeting: Audited Financial Results for the quarter and financial year ended on 31 st March, 2023 Ref: Regulation 30 & 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Dear Sir / Madam, In terms of the subject referred regulations, the Board of Directors of the Company at its meeting held on Monday, 22 nd May, 2023, has inter-alia , approved and taken on record the Audited Financial Results (both Standalone & Consolidated) for the quarter and financial year ended on 31 st March, 2023 along- with related segment-wise financial results, copy enclosed. A copy of the following is also enclosed with respect to the financial results for the quarter and year ended on 31 st March, 2023: i. Standalone and Consolidated Audit Report of the Statutory Auditors ’ ; ii. A declaration in respect of Unmodified Opinion by the Statutory Auditors ’ The aforesaid board meeting commenced at 5.00 p.m. (IST) and concluded at 09.00 p.m. (IST). You are requested to kindly take the above on your records. Thanking you, For Finolex Industries Limited Ashutosh Kulkarni Company Secretary & Compliance Officer M. No.: A18549 Encl.: As above Reglsfered Office / Urse Plant Finolex lndustries Limited Gat No. 399, Village Urse, Tal.-Maval, Dist. Pune 410 506, Maharashtra, lndia ctN 1401 08PN1 981 PLC0241 53 Tel +91 2114237251 I 237253 Toll Free 1800 200 3466 Fax +91 2114237252 Email investors@finolexind.com Web finolexpipes.com FINOTEX INDUSTRIES LIMITED Registered Office: Gat No. 399, Village Urse, Taluka Maval, Dist. Pune - 410 505. CIN: 140108PN1981ptc024153 Statement of audited Standalone Financial Results for the quarter and year ended March 31, 2023 ,NDUSTFI'ES i Crores share Particulars Standalone Quarter ended Year ended lvratcn 3L, Zg23 Audited lRefer note 9l December 31,2022 Unaudited March 37,2022 Audited March 31, 2023 Audited Matcn 3I, 2022 Audited lncome I il ilt IV Revenue from operations Other income Total income (l+ll) Expenses Cost of materials consumed Purchases of stock-in-trade Changes in inventories of finished goods, stock-in-trade and work-in- progress Employee benefits expense Finance costs Depreciation and amortisation expense Other expenses Total expenses (lV) V Profit before exceptional items and tax (lll-lv) Vl Exceptional item gain (Refer note 8) Vll Profit before tax (V+Vl) vlil Tax expense Current tax Tax pertaining to earlier year(s) Deferred tax Total tax expense lX Profit for the period/year (Vll-Vlll) X Other comprehensive income (OCl) A ltems that will not be reclassified to profit or loss Re-measurement gain/(loss) of defined benefit plans lncome-tax effect on above A(i) Re-measurement of defined benefit plans, net of income-tax Gain/(loss) on equity instruments through OCI lncome-tax effect on above A(ii) Gain/(loss) on equity instruments through OCt, net of income-tax Total other comprehensive income [A(i]+A(ii]l Xl Total comprehensive income for the period/year (tX+X) xil xilt xtv Paid-up equity share cpital (face value of < 2 each) Other equity Earnings per equity share having nominal value per share of ? 2 (Not annualised except for the year ended March 31, 2023 and Match3!,20221 Basic Diluted 1,141.06 29.20 1,,1,24.76 27.a2 L,594.57 24.76 4,397.O5 L2L.38 4,647.32 83.16 r,r70.26 1,152.58 1,61.9.33 4,518.43 4,730-48 735.93 s.38 (82.12l- 47.96 6.46 23.80 2A6.48 660.84 4.9r 94.46 48.36 5.13 22.50 224.32 9L3.51 4.27 190.48 58.26 8.06 21.55 163-39 2p03.15 19.36 149.56 t49.67 27.23 89.20 u2.77 2,807.75 14.77 32.60 190.84 14.09 83.40 583.68 953.89 1,050.52 1,359.52 4,220.94 3.727.O7 216.37 92.06 259.4L 297.49 1,009.4r 376.06 376.06 2].,6.37 92.06 635.47 297.49 7,385.47 52.80 5.22 75.22 (3.42) 7.r9 r29.OO 13.63 {0.s5) 69.19 $7.371 9.08 321.00 13.63 (2.63) 58.02 19.99 r42.O7 60.90 332.00 158.35 72.O7 493.80 236.59 7,O53.47 1.03 (0.24) (o.47l, o.!2 7.47 o.47) (0.37) 0.11 (0.32) 0.08 0.79 589.29 (0.3s) 777.95 1.40 (33e.35) 0.01 (0.26) 965.31 (o.24) (L4.27) 0.11 589.29 590.08 177.95 777.60 {339.3s) (337.9s) 966.31 966.0s (14.16) (14.40) 748.43 243.67 155_85 1,,202.64 1,039.O7 r23.67 2.55 2.55 723.67 1.16 1.15 724.70 7.96 7.96 \22.67 4,70t23 3.82 \42 r24.10 3,739.66 16.98 16.98 .. i Fiii: Corporate Office Finolex Industries Limited D-1t10, M.r.D.C. Chinchwad, Pune 411 019 Maharashtra. lndia 'TeL- +91 20 27408200 +91 20 27474444 care@finolexpipes.com finolexpipes.com a 91 STE^' ^ - &+' -'t ,sa oo <-P Z - = i DNV'GL S \., ,/ -{91EM cs4, =" 'j J_O a-z \j, oNV'GL i,; \\r Fax Email Web ,:.-F <.:.:. :: .\1 ,',: :r'^.,.. e'l'-l ". '' r'. l'--. :.j"'"*"n': 'r:.- ;: '1:' ISO 9OO1:2O1s ISO 14OO1:2O15 ISO 45OO1:2OlA Ralnagiri Plant ISO 9OO1:2O15 Pipes Division ,NDUSTR'ES Notes - 1A Segment wise Revenue, Results and Capital employed Sr No Particulars Standalone Quarter ended Year ended March3L,2023 Audited (Refer note 9l December 31, 2022 lJnaudited March3!,2022 Audited (Refer note 9) March 31, 2023 Audited March 3].,2022 Audited 1 a b 2 a b I lt il 5EGMENT REVENUE Revenue from each segment: PvC resin PVC pipes and fittings Total [ess: lnter sement revenue 501.29 r,Lo2.Lt 504.09 L,O77.!5 7,O44.40 7,276.92 2,27L.02 4,LL3.28 2,962.70 3,452.67 1,503.40 462.34 L5AL24 456.44 2,32t.32 726.75 5,384.30 r,987.25 5,474.77 2,767.45 Revenue from ooerations 1.14r.0b L,L24./6 7,594.5/ 4,39 ' .U5 4,647.32 SEGMENT RESUTTS Profit before tax and interest from each segment: PVC resin PvC DiDes and fittins It7.25 90-32 12.43 58.90 L56.45 94.20 91.90 154.18 722.74 250.24 Total 201.5t 250.55 ztr6-Da 9 /3.O2 Less: Finance costs Other un-allocable expenditure Add: Other un-allocable income 6.46 13.83 29.09 5.13 11.36 27.22 8.06 7.49 400.76 27.21 4r.54 120.18 1,4.O9 32.50 459.04 lotal Drofit Delore tax 2L6-3 I 92-(J6 b35.4/ 29t.49 7,385.47 3 a b c e b c a b c Capital employed : s€gment assets less Segment liabilities PVC resin PvC pipes and fittings Unallocated 582.06 L,45O.26 4,049.97 639.37 7,347.7r 3,323.24 1,019.16 1,369.84 2,a72.OO 582.05 7,450.26 4,0d.9.97 1,019.16 L369.44 2.472.OO Total segment assets 6,r42.29 5,304.32 5,251.00 6,t42.29 5,261..OO PVC resin PvC pipes and fittings unalloGted 96.09 34o,75 920.55 115.11 374.24 734.44 276.54 139.00 981.56 96.09 t40.75 920.55 276.54 139.00 981.66 fotal seement liabilities Lt5t.39 L,22/.43 7,39 /.24 L,157.19 7,397.24 PVC resrn PvC pipes and fittings Unallocated 545.9/ 1,109.51 3,129.42 524.26 967.47 2,544.76 42.54 7,230.44 1,890.34 545.9/ 1,1#t.51 3,129.42 42.-54 7,230.44 1,890.34 Capital emploved 4,424.90 4,O76.49 3,463.76 4,824.90 3,863.t6 I PUNE 'NDUSTF'ES FINOTEX INDUSTRIES TIMITED Registered Office: Gat No. 399, Village Urse, Taluka Maval, Dist. Pune - 410 506. CIN: l-40108PN1981PtC024153 Statement of audited Consolidated Financial Results for the quarter and year ended March 31, 2023 { Crores share Particulars Consolidated Quarter ended Year ended March 31,2023 Audited (Refer note 9) uecember J1, zuzz Unaudited March 37, 2022 Audited (Refer note 9) NlArCn 3\ 2U23 Audited Marcn 3L, 2022 Audited I il ilt tv lncome Revenue from operations Other income Total income (l+ll) Expenses Cost of materials consumed Purchases of stock-in-trade Changes in inventories offinished goods, stock-in-trade and work-in- progress Employee beneflts expense Finance costs Depreciation and amortisation expense Other expenses Total expenses (lV) Profit before exceptional items, share of net profit/(loss) of investment in an associate accounted for using equity method and tax (llllV) vl Exceptional item gain (Refer note 8) Vll Profit before investment in an associate accounted for using equity method and tax (v+vl) Vlll Share of profit/(loss) ofinvestment in an associate accounted for using equity method lX Profit before tax (Vll+Vlll) x Tax expense Current tax Tax pertaining to earlier year(s) Deferred tax Total tax expense Xl Profit for the period/year (lx-x) Xll Other comprehensive income (OCl) A ltems that will not be reclassified to profit or loss Re-measurement gain/(loss) of defined benefit plans lncome-tax effect on above A(i) Re-measurement of defined benefit plans, net of income-tax Gain/(loss) on equity instruments through OCI lncome-tax effect on above A(iil Gain,/(loss) on equity instruments through OCl, net of income-tax Total other comprehensive income [A(i]+A(ii]l xilt Total comprehensive income for the period/year attributable to the Holding Company (xl+xll) XIV Paid-up equity share capital (face value oft 2 ea€h) XV Other equity XVI Earnings per equity share having nominal value per share of ? 2 (Not annualised except for the year ended March 31, 2023 and M,arch3t,2o22l Basic Diluted 1,141.06 29.20 L,124.76 27.42 t,594.57 24.76 4,397.O5 t20.92 4,647.32 82.23 r.L70.26 1,152.58 1,619.33 4,5L7.97 4,729.55 735.93 5.38 l82.L2l 47.96 6.46 23.80 276.48 660.84 4.9L 94.46 48.36 5.13 22.50 224.32 913.51 4.27 190.48 58.26 8.06 21.5s 153.39 2,903.15 19.36 149.56 189.67 27.23 89.20 u2.77 2,80r.75 74.77 32.60 190.84 14.09 83.40 583.68 9s3.89 1,060.52 L,359.52 4,220.94 3,721,.O7 216.17 92.06 259.47 297.O3 1,008.48 376.06 376.06 2!6.37 13.45 92.06 12.85 635.87 2.r8 297.O1 24.26 1,384.54 IL.47) 229.42 104.91 638.05 32t.29 1,383.07 55.36 o.74 7.22 19.45 (3.42) 9.34 729.tO 13.63 0.20 74.94 (16.86) t2.47 321.10 13.63 (3.00) 63.32 25.37 742.93 70.59 33r.73 166.50 79.54 495.72 250.70 1,051.35 1.05 (o.241 (o.47) o.t2 1.95 (0.47) {0.3s) 0.11 (0.23) 0.08 0.81 s89.29 (0.3s) L7r.95 L4A (33e.36) 0.01 (0.24) 966.31 (0.1s) (74.271. 0.11 589.29 590.10 L7L.95 171.60 (339.3s) (337.86) 966.31 966.O7 (14.16) (14.31) 7s6.60 257.r4 t57.26 1,215.77 1,037.03 t23.57 2.68 2.64 r23.67 L2a 7.24 L24.rO 7.9a 7.94 t2!.67 4,779.40 4.04 4-o4 L24.70 3,803.71 16-94 76.94 ;1:t.-;:. '\\',n 'i: ,-1-)i --'1:- " t";, : :lir,1; :;r:': r '2-v .1.': ' .i v\---l {\- rv; INDUSTRIES Notes - 18 Segment wise Revenue, Results and Capital employed Sr No Particulars Consolidated Year ended Ma(cn 3J., 2ll23 Audited (Refer note 9) December 31, ZU22 Unaudited March 34, ZO22 Audited (Refer note 9l March 31., zuzS Audited Matcn 37,2022 Audited 1 a b 2 a b I il ilt tv SEGMENT REVENUE Revenue from each segment: PVC resin Total Less: lnter segment revenue 50L.29 L,LO2.aa 504.09 L,O77.75 7,O44.40 !,276.92 2,27L.Oz 4,773.28 2,962.rO 3,a52.67 1,603.4t) 46.2.34 L,547.24 456.44 2,327.32 726.75 6,384.30 t,987.2s 5,474.77 2,167.45 Revenue lrom operations L,L4t.O6 t,724.76 1,594.57 4,397.05 4,647.32 SEGMENT RESULTS Profit before tax and interest from each segment: PVC resin PVC DiDes and fittinss L17.25 90.12 12.43 68.90 156.46 94.20 91.90 154.18 722.78 250.24 Total zgt.5 t 41.33 250.bb 246,oa 9 /3.O2 Less: Finance costs Other un-allocable expenditure Add: Other un-allocable income Share of profit/(loss) of an associate 5.45 13.83 29.O9 13-45 5.13 11.36 27.22 12.85 8-O5 7.49 400.76 2.14 27.23 4L.54 LLg.72 24.26 14.09 32.50 458.11 (L.47r. Total profit before tax 229.82 104.91 638.05 32!.29 1,383.07 3 a b c a b c a b c Capital employed : Segment assets less Segment liabilities PVC resin A/C pipes and fittings Unallocated 682.06 1,450.26 4,L52.75 639.37 r347.71 3.415.35 1,019.16 1,369.84 2.956.37 582.05 L,450.25 4,L52.75 1,019.16 1,369.84 2.956.37 b.245.0, 5.39b.43 5.345.31 b.za5.o/ 5.345-3 / PVC resin PVC pipes and fittings Unallocated 96.09 34n-75 945.16 1.15.11 374.24 760.67 276.54 139.00 1,001.98 96.olt 140.75 945.16 276.54 139.00 1,001.98 Total segment liabilities 1,382.00 1,,249.96 1.,4L7.56 1,382.OO L,41.7.56 PVC resin PvC pipes and fittings Unallocated 585.97 1,109.51 3.207.59 524.26 967.47 2.654.74 742.58 1,230.84 1.954.40 585.97 1,l(xt.51 3.207.59 742.54 L,230.84 1.954.40 Caoital emDloved 4.9lJ3.O1 4,).46.47 3,92/.42 4,9lJ3.91 3,92 t.42 PUNE 2 Statement of audited standalone and consolidated assets and liabilities as on March 31, 2023 INDUSTRIES { Crores Particulars Standalone Consolidated March 31, 2023 Mafcn 37,2022 Matcn 3r, 2u23 Marcn 3L, 2022 A 1 2 ASSETS Non-current assets (a) Property, plant and equipment (b) Right-of-use assets (c) Capital work-in-progress (d) Other lntangible assets (e) lnvestments accounted for using equity method (fl Financial assets i) lnvestments ii) Loans iii) Other financial asset (g) lncome-tax assets (net) (h) Other non-current assets fotal non-current assets Current assets (a) lnventories (b) Financial assets i) lnvestments ii) Trade receivables iii) Cash and cash equivalents iv) Bank balances other than (iii) above v) Loans vi) Other financial assets (c) Other current assets Total current assets r,o37.57 15.81 43.42 o.79 2,O76.98 0.03 41.83 24.52 47.57 992.33 9.46 0.90 7,O80.77 13.48 38.16 25.50 54.34 L,O37-57 16.81 43.82 0.79 110.28 2,069.4a 0.03 41.83 24.52 47.57 992.33 9.46 0.90 91.85 L,O73.28 13.48 38.16 25.60 54.34 3.249.92 2.275.O4 3,392.19 2,299.41 673.15 7,767.O7 297.54 8.55 52.04 22.79 9.31 61.91 7,O75.47 7,552.52 334.46 23.55 57.49 8.70 13.00 40.77 573.15 L,767.O7 297.54 8.56 52.O4 22.79 9.31 61.91 r,o75-47 7,552.52 334.46 23.55 57.49 8.70 13.00 40.77 2,492.37 3,045.95 2,892.37 3,045.95 Total assets 6,t42.29 5,261.00 6,285.O7 5,345.37 B 1 2 3 EqUITYAND LIABILITIES Equity {a) Equity share capital (b) Other equity Total equity UABTUTTES Non €urrent liabilities (a) Financial liabilities i) Lease liabilities ii) Other financial liabilities (b) Provisions (c) Deferred tax liabilities (net) (d) Government grants Total non-current liabilities Current liabilities {a) Financial liabilities i) Borrowings ii) Lease liabilities iii) Trade payables a) total outstanding dues of micro enterprises and small enterprises and b) total outstanding dues of creditors other than micro enterprises and small enterprises iv) Other financial liabilities {b) Other current liabilities (c) Provisions (d) Current tax liabilities (net) {e) Government grants fotal current liabilities fotal liabilities !23.67 4.70L.23 r24.70 3.739-65 ''23.67 4.779.40 L24.70 3.803.71 4.4z4-gtl 3,463./6 4,9O3.O1 3,92/.aJ. 72.27 0.20 78.12 124.66 66.21, o.74 15.50 115.70 57.05 L2.2r 0.20 LA.L2 L49.27 66.21 0.14 15.50 136.O2 67.O5 zzL-40 194_39 246.94 2ta.tl 526.47 2.ao !2.27 277.03 249.46 51.33 4.46 0.31 t2.52 278.O3 8.05 455.03 275.22 150.08 4.27 17.50 LO-73 526.47 2.ro L2.27 277.O3 249.46 51.33 4.45 0.31 72.52 274.O3 8.05 455.03 275.22 150.08 4.27 L7.50 LO.73 1,135.99 1.198.85 1,rJ5.99 1,t 94.45 L.Js r.39 r,39 /.24 1.3aZ.OU 1.41l.56 fotal eouitv and liabilities 6,L42.29 5,261.00 6,245.Ot 5,345.3/ /@ il' ' \i'4 {t ., i PUi.;; ) ., j; '' a .)1a.1 i".:-.. ,t'F'- 3 Statement of audited Standalone and Consolidated Cash flow for the year ended March 31, 2023 ,A'DUSTR'ES { Crores Sr No Particulars Standalone Consolidated March 31, 2023 March3!,2022 March 31,2023 March37,2022 lt il tv vt Cash flows from operating activities Profit before tax Adiustments: Share of (profit)/loss from associate before tax Depreciation and amortisation expense Balances written off Profit on sale of investments (net) (Gain)/loss on fair valuation of investments (Profit)/loss on sale ofassets (net) Dividend income Exceptional item Unwinding of government grant income lnterest income Unrealised exchange fluctuation (gain)/ loss - net Finance costs Operating profit before working capital changes Change in operatint assets and liabilities lnventories Irade receivables Loans Other financial assets Other current assets Government grants {net) frade payables Provisions Other fi nancial liabilities Other current liabilities Cash generated from working capital changes Less - lncome-tax paid Net cash inflow from operating activities cash flow from investing activities Payment for purchase of property, plant and equipment (including capital work-in-progress and capital advances) Proceeds from sale of property, plant and equipment (net) Net proceeds from purchase/sale of investments Dividend income received lnvestments in fixed deposits lnterest income received Net cash inflov(outflow) from investing activities Cash flow from financing activities Finance costs Repayment of short-term borrowings (net of proceeds) Payment of lease liabilities Dividend paid Net cash inflow /(outflow) from financing activities Net increase / (decreasel in €sh and csh equivalents at the end ofthe year (l+ll+lll) Cash and cash equivalents at the beginning of the financial year cash and cash equivalents at the end of the year (lv+v) 297.49 89.20 (33.2e) (37.0s) (0.02) (13.78) lL2.52l (28.s6) 0.59 27.2t 7345.47 83.40 7.37 (8.1s) (8.s0) o.87 (13.14) {376.06) 0o.731. (36.s7) 1.50 L4.O9 32'-.29 (24.261 89.20 (33.29) (37.0s) (0.02) (13.32) (L2.621 (28.s6) 0.s9 27.2t 7,383.O7 L.47 83.40 1.37 (8.r.s) (8.e0) o.87 172.27r. (376.06) (10.73) (35.s7) 1.50 14.O9 289.19 342.32 36.92 (0.64) (2.6e) (13.03) 16.42 (L7t.7tl 2.50 (2s.281 (98.751 1,033.15 (e5.56) (186.48) l2L.7el (10.37) 33.15 11.89 27.2L 2.t3 55.49 99.85 249.!9 t42.t2 36.92 (0.54) (2.6s) (13.03) l6.42 (773.731 2.50 129.281 t98-751 1,033.L5 (s6.56) (186.48) (2t.7sl (10.37) 33.15 11.89 27.27 2.73 65.49 99.85 ao.M 157.941 (7s.s8) (33s.s8) 80.44 G7.941 (7s.s8) (33s.s8) 301.59 (158.74) 1.06 |G67.4r1 13.78 5.45 28.12 627.99 (84.41) 380.63 (1,038.33) L3.L4 247-37 4L.26 301.59 (168.74) 1.06 (767.4L1 L3.78 5.45 24.L2 62t.99 (84.41) 380.63 (1.,038.33) 13.14 247.37 41-.26 Qa7.74l /.440.341 12a7.741 1440.34]. (2s.20) 247.73 (3.28) (248.L91 (14.08) 72.77 (248.L91 l25.2Ol 247.73 (3.28) (2r18.19) (14.08) 72.77 (248.791 (28.94) (189.s0) /.2a.94l (189.50) (14.99) 23.55 (7.8s) 3L.40 (14.99) 23.55 (7.8s) 31.40 8.s6 23.55 8.56 23.55 4 PUN: Notes ,A'DUSTR'ES The standalone and consolidated financial results of Finolex lndustries Limited ( the 'Holding Company') and its associate for the quarter and year ended March 31, 2023 have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on May 22, 2023. The above results for the year ended March 37,2023 have been audited by the statutory auditors of the Holding Company. These results have been prepared in accordance with the recognition and measurement principles laid down in the applicable lndian Accounting Standards specified under Section 133 of the Companies Act 2013 ('the Ac/') read with Companies (lndian Accounting Standards) Rules 2015 and other accounting principles generally accepted in lndia and is in compliance with the presentation and disclosure requirements of Regulation 33 ofthe SEBI (Listing Obligation and Disclosure Requirements) Regulation 2015 (as amended). The Holding Company has investment in two associates, Finolex Plasson lndustries Private Limited and Pawas Port Limited. The Holding Company duly consolidates using equity method as prescribed under lnd AS 28 on 'lnvestment in Associates and ioint Ventures' its 45.35% stake in Finolex Plasson lndustries Private Limited. However, the Company does not consolidate its 49.99% equity stake (corresponding investment amounting to Rs 0.05 crore) in Pawas Port Limited since the associate company has not started operations and is not material to the Holding Company. The Board of Directors have recommended final dividend of < 1.50 (75%) per equity share of I 2 each for fin ancial yea( 2022-23. The dividend is subject to the approval of the shareholders in the ensuing Annual General Meeting of the Holding Company. Exceptional items for the year ended March 31, 2022 in the standalone and consolidated financial results pertain to the gain on transfer of leasehold rights on land. 9 The figures for the quarter ended March 31, 2023 and March 31, 2022 arc the balancing figures between the audited figures in respect of the full financial year and the unaudited published figures upto nine months of the respective financial year. 10 Previous periods'figures have been re-grouped wherever necessary, to conform to the current period's classification. By order of the Board of Directors 4 6 8 Place: Pune Date: May 22, 2023 For Finolex lndustries Limited I n.na Anilwhabi Managing Director DtN 00142052 e PUNE Walker Chandiok &Co LLP lndependent Auditor's Report on Standalone Annual Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) To the Board of Directors of Finolex lndustries Limited Opinion 1. We have audited the accompanying standalone annual financial results ('the Statement') of Finotex lndustries Limited ('the Company') for the year ended 31 March 2023, attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations ,2015 (as amended) ('Listing Regulations'). 2. ln our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the audit report issued by the auditor of Finolex lndustries Limited Employees' Welfare Trust ('Welfare Trust') as referred to in paragraph 13 below, the Statement: (i) presents financial results in accordance with the requirements of Regulation 33 of the Listing Regulations; and (ii) gives a true and fair view in conformity with the recognition and measurement principles laid down in the applicable lndian Accounting Standards ('lnd AS') specified under section 133 of the Companies Act, 2013 ('the Act'), read with the Companies (lndian Accounting Standards) Rules, 2015, and other accounting principles generally accepted in lndia, of the standalone net profit after tax and other comprehensive income and other financial information of the Company for the year ended 31 March 2023. Basis for Opinion 3. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Our responsibilities under those standards are further described in the Audlfols Responsibilities for the Audit of the Statemenf section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the lnstitute of Chartered Accountants of lndia ('the lCAl') together with the ethical requirements that are relevant to our audit of the financial results under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us, togetherwith the audit evidence obtained by the auditor of the Welfare Trust, in terms of their audit report referred to in paragraph 13 of the Other Matters section below, is sufficient and appropriate to provide a basis for our opinion. c * Chartered Accountants Walker Chandiok & Co LLP 3rd Floor, Unit No. 310 to 312, West \Mng, Nyati Unitree Nagar Road, Yerwada, Pune-411 006 Maharashtra, lndia T +91 20 6744 8888 F +9'l 20 6744 8899 Vvalker Chandiok & Co LLP is registered with limited liability with identification numberMC-2085 and has its .egistered office at L-41 Connaught Circus, Outer Circle, New Delhi, 110001, India Offices in Bengaluru, Chandigarh. Chennai, Gurugram, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune Walker Chandiok &Co LLP Independent Auditor's Report on Standalone Annual Financial Results of the Gompany Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) (Cont'd) Responsibilities of Management and Those Gharged with Governance for the Statement 4. This Statement has been prepared on the basis of the standalone annual financial statements and has been approved by the Company's Board of Directors. The Company's Board of Directors is responsible for the preparation and presentation of the Statement that gives a true and fair view of the net profiVloss and other comprehensive income and other financial information of the Company in accordance with the lnd AS specified under section 133 of the Act, read with the Companies (lndian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in lndia, and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Statement that gives a true and fair view and is free from material misstatement, whether due to fraud or error. ln preparing the Statement, the Board of Directors is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern, and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. 6. The Board of Directors is also responsible for overseeing the Company's financial reporting process. Auditor's Responsibilities for the Audit of the Statement Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Standards on Auditing, specified under section 143(10) of the Act, will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Statement. 8. As part of an audit in accordance with the Standards on Auditing, specified under section 1a3(10) of the Act, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: ldentifu and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 5 7 a a Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Company has in place an adequate internal financial controls with reference to financial statements and the operating effectiveness of such controls. Cha.i@d A@untants q, * Walker Chandiok &Co LLP lndependent Auditor's Report on Standalone Annual Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) (Gont'd) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors. Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. lf we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Statement or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the Statement, including the disclosures, and whether the Statement represents the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the financial information of the Company and its Welfare Trust or the business activities within the Gompany to express an opinion on the Statement. We are responsible for the direction, supervision and performance of the audit of financial information of the Company of which we are the independent auditors. For the Welfare Trust included in the Statement, which has been audited by the other auditor, such other auditor remains responsible for the direction, supervision and performance of the audit carried out by them. We remain solely responsible for our audit opinion. 9. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 10. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. Other Matters 11. The Statement includes the financial results for the quarter ended 31 March2023, being the balancing figures between the audited figures in respect of the full financial year and the published unaudited year-to-date figures up to the third quarter of the current financial year, which were subject to limited review by us. 12. The audit of standalone financial results for the corresponding quarter and year end ed 31 March 2022 included in the Statement was carried out and reported by P.G Bhagwat LLP who have expressed unmodified opinion vide their audit report dated 18 May 2022, whose report has been furnished to us, and which has been relied upon by us for the purpose of our audit of the Statement. Our opinion is not modified in respect of this matter. 13. We did not audit the financial statements of the Welfare Trust included in the Statement, whose financial information reflects total assets of Rs. 43.69 crores at 31 March 2023, total revenues of Rs. Nil crores, total net profit after tax of Rs. 3.94 crores, total comprehensive income of Rs. 3.94 crores, and cash flows (net) of Rs. 0.02 crores for the year ended on that date, as considered in the Statement. a a a * Chartend A@trtsnte Walker Chandiok&Co LLP Independent Auditor's Report on Standalone Annual Financial Results bf the Gompany Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) (Co nt'd) These financial statements have been audited by another auditor whose audit report has been furnished to us by the management. The aforementioned financial statements of this trust have been prepared in conformity with the Accounting Standards specified under section 133 of the Act, read with the Companies (Accounting Standards) Rules, 2021. fhe Company's management has converted these financial statements of the Welfare Trust to accounting principles enunciated under the lndian Accounting Standards ('lnd AS') specified under section 133 of the Act read with the Companies (lndian Accounting Standards) Rules,2015 as applicable to the Company. We have audited these conversion adjustments made by the Company's management. Our opinion, in so far as it relates to the amounts and disclosures included in respect of such trust, is based on the report of other auditor and the conversion adjustments prepared by the management of the Company and audited by us. Our opinion is not modified in respect of this matter with respect to our reliance on the work done by and the report of the other auditor. For Walker Chandiok & Co LLP Chartered Accountants Firm Registration No.: 001 076N/N50001 3 U?- vt.^,--r.7 RajniMundra Partner Membership No. 058644 UDIN: 23058644BGXZO|I 01 0 Place: Pune Date;Z2May 2023 CharfaGd Arynfuts Walker Chandiok &Co LLP 1 2 lndependent Auditor's Report on Consolidated Annual Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) To the Board of Directors of Finolex lndustries Limited Opinion We have audited the accompanying consolidated annual financial results ('the Statement') of Finolex fndustries Limited ('the Holding Company') and its associate for the year ended 31 March 2023, attached herewith, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) ('Listing Regulations'). ln our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of other auditors on separate audited financial statements of the associate and Finolex lndustries Limited Employees' Welfare Trust ('Welfare Trust'), as referred to in paragraph 12 below, the Statement: (i) includes the annual financial results of the following entity: a) Finolex Plasson industries Private Limited, as an associate (ii) presents financial results in accordance with the requirements of Regulation 33 of the Listing Regulations; and (iii) gives a true and fair view in conformity with the recognition and measurement principles laid down in the applicable lndian Accounting Standards ('lnd AS') prescribed under section 133 of the Companies Act, 2013 ('the Act') read with the Companies (lndian Accounting Standards) Rules, 2015, and other accounting principles generally accepted in lndia, of the consolidated net profit after tax and other comprehensive income and other financial information of the Holding Company and its associate for the year ended 31 March 2023. Basis for Opinion 3. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Statemenf section of our report. We are independent of the Holding Company and its associate, in accordance with the Code of Ethics issued by the lnstitute of Walker Chandiok & Co LLP 3rd Floor, Unit No. 310 to 312, West Vliing, Nyati Unitree Nagar Road, Yerwada, Pune - 411 006 Maharashtra, lndia T +91 20 6744 8888 F +91 20 6744 8899 Walker Chandiok & Co LLP is registered with limited liability with identifi€tion numberMC-2085 and has its registered oftlce at L-41 Connaught Circus, Outer Circle, New Delhi, 110001, lndia Chartered Accountants Offices in Bengaluru, Chandigadn, Chennai, Gurugram, New Delhi. Noida and Pune Walker Chandiok &Co LLP lndependent Auditor's Report on Gonsolidated Annual Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) (Gont'd) Chartered Accountants of lndia ('the lCAl') together with the ethical requirements that are relevant to our audit of the financial results under the provisions of the Act, and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us togetherwith the audit evidence obtained by the other auditors in terms of their reports referred to in paragraph 12 of the Other Matters section below, is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Statement The Statement, which is the responsibility of the Holding Company's management and has been approved by the Holding Company's Board of Directors, has been prepared on the basis of the consolidated annual financial statements. The Holding Company's Board of Directors is responsible for the preparation and presentation of the Statement that gives a true and fair view of the consolidated net profit or loss and other comprehensive income, and other financial information of the Holding Company including its associate in accordance with the lnd AS prescribed under section 133 of the Act read with the Gompanies (lndian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in lndia and in compliance with Regulation 33 of the Listing Regulations. The respective Board of Directors/ management of the Holding Company and its associate, are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act, for safeguarding of the assets of the Holding Company and its associate, and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively, for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial results, that give a true and fair view and are free from material misstatement, whether due to fraud or error. These financial results have been used for the purpose of preparation of the Statement by the Directors of the Holding Company, as aforesaid. 5. ln preparing the Statement, the respective Board of Directors of the Holding Company and of its associate, are responsible for assessing the ability of the Holding Company and of its associate, to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the Board of Directors either intends to liquidate the Holding Company or to cease operations, or has no realistic alternative but to do so. 6. The respective Board of Directors of the Holding Company and of its associate, are responsible for overseeing the financial reporting process of the Holding Company and of its associate. Auditor's Responsibilities for the Audit of the Statement Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Standards on Auditing specified under section 143(10) of the Act will always detect a material misstatement, when it exists. Misstatements can arise from fraud or error, and are considered material if, individually, or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Statement. 8 As part of an audit in accordance with the Standards on Auditing specified under section 143(10) of the Act, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: ldentify and assess the risks of material misstatement of the Statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a m